Horizonte Minerals Financial Results for the Third Quarter 2011 and Management Discussion and Analysis

TORONTO, Nov. 14, 2011 /PRNewswire/ - Horizonte Minerals (TSX:HZM, AIM:HZM) ("Horizonte" or "the Company") the AIM and TSX quoted Brazilian focused exploration and development
company, announces that it has today published its unaudited financial
results for the three and nine month periods ending 30 September 2011.
The Management Discussion and Analysis for the same periods have also
been published.

The Company announced on 4 July 2011 that a 3,000m diamond drilling
programme had commenced at Falcao

A definitive agreement was entered into on 12 July 2011 with Lara
Exploration Ltd with respect to the Vila Oito and Floresta nickel
laterite projects. Completion of the transaction is subject to certain
administrative steps in Brazil being achieved. Consideration to be
paid will be as per the Heads of Agreement announced on 18 January 2011

Further drill results were announced for Araguaia on 21 July 2011

The Company announced on 12 September 2011 further drill results at
Araguaia

Earnings per share from continuing operations attributable to the equity holders of the Company

Basic and diluted (pence per share)

9

(0.447)

1.08

(0.197)

1.10

Condensed consolidated statement of financial position

Notes

30 September2011Unaudited£

31 December2010Audited£

Assets

Non-current assets

Intangible assets

6

19,099,709

16,918,202

Property, plant & equipment

166,782

168,223

Deferred taxation

7,261,316

8,079,087

26,527,807

25,165,512

Current assets

Trade and other receivables

78,743

72,314

Cash and cash equivalents

7,051,095

3,847,031

7,129,838

3,919,345

Total assets

33,657,645

29,084,857

Equity and liabilities

Equity attributable to owners of the parent

Issued capital

7

2,795,600

2,465,605

Share premium

7

18,772,797

11,283,355

Other reserves

8,847,341

10,933,292

Accumulated losses

(3,265,365)

(2,184,252)

Total equity

27,150,373

22,498,000

Liabilities

Non-current liabilities

Contingent consideration

2,813,447

2,676,502

Deferred taxation

3,155,915

3,511,338

5,969,362

6,187,840

Current liabilities

Trade and other payables

537,910

399,017

537,910

399,017

Total liabilities

6,507,272

6,586,857

Total equity and liabilities

33,657,645

29,084,857

Condensed statement of changes in shareholders' equity

Attributable to the owners of the parent

Share
capital
£

Share
premium
£

Accumulated
losses
£

Other
reserves
£

Total
£

As at 1 January 2010

590,191

6,811,399

(2,867,224)

(1,048,100)

3,486,266

Comprehensive income

Profit / (Loss) for the period

-

-

959,504

-

959,504

Other comprehensive income

Currency translation differences

-

-

-

608,921

608,921

Total comprehensive income

-

-

959,504

608,921

1,568,425

Transactions with owners

Share based payments

-

-

12,818

-

12,818

Issue of ordinary shares

1,875,414

4,883,503

-

10,995,621

17,754,538

Issue costs

-

(411,547)

-

(106,861)

(518,408)

Total transactions with owners

1,875,414

4,471,956

12,818

10,888,760

17,248,948

As at 30 September 2010

2,465,605

11,283,355

(1,894,902)

10,449,581

22,303,639

As at 1 January 2011

2,465,605

11,283,355

(2,184,252)

10,933,292

22,498,000

Comprehensive income

Loss for the period

-

-

(1,226,322)

-

(1,226,322)

Other comprehensive income

Currency translation differences

-

-

-

(2,085,951)

(2,085,951)

Total comprehensive income

-

-

(1,226,322)

(2,085,951)

(3,312,273)

Transactions with owners

Issue of ordinary shares

329,995

7,919,880

-

-

8,249,875

Issue costs

-

(430,438)

-

-

(430,438)

Share based payments

-

-

145,209

-

145,209

Total transactions with owners

329,995

7,489,442

145,209

-

7,964,646

As at 30 September 2011

2,795,600

18,772,797

(3,265,365)

8,847,341

27,150,373

Condensed Consolidated Statement of Cash Flows

9 months ended30 September

3 monthsended30 September

2011Unaudited£

2010Unaudited£

2011Unaudited£

2010Unaudited£

Cash flows from operating activities

Profit / (Loss) before taxation

(1,226,322)

959,504

(549,689)

1,646,562

Interest income

(95,199)

(1,571)

(37,179)

(178)

Finance costs

136,945

22,011

45,649

22,011

Exchange differences

(1,688)

28,734

10,134

28,734

Employee share options charge

145,209

12,818

52,089

4,339

Gain on bargain purchase of subsidiary undertaking

-

(1,798,251)

-

(1,798,251)

Profit on sale of property, plant and equipment

(10,876)

-

(10,876)

-

Transaction fees settled by share issue

-

150,000

-

150,000

Gain on investment

-

(440,079)

-

(440,079)

Depreciation

4,109

10,103

1,465

3,558

Operating profit / (loss) before changes in working capital

(1,047,822)

(1,056,731)

(488,407)

(383,304)

(Increase) / decrease in trade and other receivables

(6,429)

(99,147)

293,308

35,428

Increase / (decrease) in trade and other payables

138,894

423,655

(746,183)

69,310

Net cash inflow/(outflow) from operating activities

(915,357)

(732,223)

(941,282)

(278,566)

Cash flows from investing activities

Net purchase of intangible assets

(3,743,580)

(621,531)

(1,758,952)

(520,356)

Purchase of property, plant and equipment

(62,511)

(44,720)

1,832

-

Proceeds from sale of property, plant and
equipment

10,876

-

10,876

-

Cash acquired in subsidiary

-

957

-

957

Interest received

95,199

1,571

37,179

178

Net cash used in investing activities

(3,700,016)

(663,723)

(1,709,065)

(519,221)

Cash flows from financing activities

Proceeds from issue of ordinary shares
(net of issue costs)

7,819,437

4,757,707

-

4,948,417

Net cash inflow from financing activities

7,819,437

4,757,707

-

4,948,417

Net increase/(decrease) in cash and cash equivalents

3,204,064

3,361,761

(2,650,347)

4,150,630

Cash and cash equivalents at beginning of period

3,847,031

1,281,410

9,701,372

492,541

Exchange (losses)/gains on cash and cash
equivalents

0

642

70

642

Cash and cash equivalents at end of the period

7,051,095

4,643,813

7,051,095

4,643,813

Major non-cash transactions

On 17 August 2010, the Company issued 123,280,240 ordinary shares in
consideration for the purchase of the entire share capital of Teck
Cominco Brasil S.A. and 10,000,000 ordinary shares in consideration for
the purchase of the entire share capital of Lontra Empreendimentos e
Participações Ltda. On the same date the Company issued a further
3,000,000 ordinary shares to certain professional advisors in
settlement of services in relation to the acquisitions and placement of
shares.

During 2010 intangible exploration and evaluation costs of £484,921 were
disposed of in exchange for shares in a joint venture company.

Notes to the Financial Statements

1. General information

The principal activity of Horizonte Minerals Plc ('the Company') and its
subsidiaries (together 'the Group') is the exploration and development
of precious and base metals. There is no seasonality or cyclicality of
the Group's operations.

The Company's shares are listed on the Alternative Investment Market of
the London Stock Exchange (AIM) and on the Toronto Stock Exchange
(TSX). The Company is incorporated and domiciled in the United Kingdom.
The address of its registered office is 26 Dover Street London W1S 4LY.

2.Basis of preparation

The condensed interim financial statements have been prepared using
accounting policies consistent with International Financial Reporting
Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended 31
December 2010, which have been prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted by the
European Union.

The condensed interim financial statements set out above do not
constitute statutory accounts within the meaning of the Companies Act
2006. They have been prepared on a going concern basis in accordance
with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS) as adopted by the European Union.
Statutory financial statements for the year ended 31 December 2010 were
approved by the Board of Directors on 3 March 2011 and delivered to the
Registrar of Companies. The report of the auditors on those financial
statements was unqualified.

The condensed interim financial statements of the Company have not been
audited or reviewed by the Company's auditor, Littlejohn LLP.

Going concern

The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Group to continue in operational existence for
the foreseeable future and that, therefore, it is appropriate to adopt
the going concern basis in preparing the condensed interim financial
statements for the period ended 30 September 2011.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the
business. The key risks that could affect the Group's medium term
performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2010 Annual
Report and Financial Statements, a copy of which is available on the
Group's website: www.horizonteminerals.com. The key financial risks are liquidity risk, foreign exchange risk,
credit risk, price risk and interest rate risk.

Critical accounting estimates

The preparation of condensed interim financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the end of the reporting period. Significant items
subject to such estimates are set out in note 4 of the Group's 2010
Annual Report and Financial Statements. The nature and amounts of such
estimates have not changed significantly during the interim period.

3.Significant accounting policies

The condensed interim financial statements have been prepared under the
historical cost convention as modified by the revaluation of certain of
the subsidiaries' assets and liabilities to fair value for
consolidation purposes.

The same accounting policies, presentation and methods of computation
have been followed in these condensed interim financial statements as
were applied in the preparation of the Group's financial statements for
the year ended 31 December 2010, except for the impact of the adoption
of the Standards and interpretations described below.

The preparation of condensed interim financial statements in conformity
with IFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of
applying the Group's Accounting Policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and
estimates are significant to the condensed interim financial
statements, are disclosed in Note 4 of the Group's 2010 Annual Report
and Financial Statements.

3.1.Changes in accounting policy and disclosures

(a) New and amended standards, and interpretations mandatory for the
first time for the financial year beginning 1 January 2011 but not
currently relevant to the Group.

The following standards and amendments to existing standards have been
published and are mandatory for the Group's accounting periods
beginning on or after 1 January 2011 or earlier periods, but not
currently relevant to the Group.

A revised version of IAS 24 "Related Party Disclosures" simplified the
disclosure requirements for government-related entities and clarified
the definition of a related party. This revision was effective for
periods beginning on or after 1 January 2011.

An amendment to IFRS 1 "First-time Adoption of International Financial
Reporting Standards" relieved first-time adopters of IFRSs from
providing the additional disclosures introduced in March 2009 by
"Improving Disclosures about Financial Instruments" (Amendments to IFRS
7). This amendment was effective for periods beginning on or after 1
July 2010.

Amendments to IFRS 7 "Financial Instruments: Disclosures" were designed
to help users of financial statements evaluate the risk exposures
relating to transfers of financial assets and the effect of those risks
on an entity's financial position. These amendments were effective for
periods beginning on or after 1 January 2011 but are still subject to
EU endorsement.

Amendments to IAS 32 "Financial Instruments: Presentation" addressed the
accounting for rights issues that are denominated in a currency other
than the functional currency of the issuer. These amendments were
effective for periods beginning on or after 1 February 2010.

IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments"
clarified the treatment required when an entity renegotiates the terms
of a financial liability with its creditor, and the creditor agrees to
accept the entity's shares or other equity instruments to settle the
financial liability fully or partially. This interpretation was
effective for periods beginning on or after 1 July 2010.

An amendment to IFRIC 14 "IAS 19 - The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction", on prepayments of
a minimum funding requirement, applies in the limited circumstances
when an entity is subject to minimum funding requirements and makes an
early payment of contributions to cover those requirements. The
amendment permitted such an entity to treat the benefit of such an
early payment as an asset. This amendment was effective for periods
beginning on or after 1 January 2011.

(b) New standards, amendments and interpretations issued but not
effective for the financial year beginning 1 January 2011 and not early
adopted

The Group's assessment of the impact of these new standards and
interpretations is set out below.

IFRS 10 "Consolidated Financial Statements" builds on existing
principles by identifying the concept of control as the determining
factor in whether an entity should be included within the consolidated
financial statements of the parent company. The standard provides
additional guidance to assist in the determination of control where
this is difficult to assess. This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The
Directors are assessing the possible impact of this standard on the
Group's Financial Statements.

IFRS 11 "Joint Arrangements" provides for a more realistic reflection of
joint arrangements by focusing on the rights and obligations of the
arrangement, rather than its legal form (as is currently the case).
The standard addresses inconsistencies in the reporting of joint
arrangements by requiring a single method to account for interests in
jointly controlled entities. This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The
Directors are assessing the possible impact of this standard on the
Group's Financial Statements.

IFRS 12 "Disclosure of Interests in Other Entities" is a new and
comprehensive standard on disclosure requirements for all forms of
interests in other entities, including joint arrangements, associates,
special purpose vehicles and other off balance sheet vehicles. This
standard is effective for periods beginning on or after 1 January 2013,
subject to EU endorsement. The Directors are assessing the possible
impact of this standard on the Group's Financial Statements.

IFRS 13 "Fair Value Measurement" improves consistency and reduces
complexity by providing, for the first time, a precise definition of
fair value and a single source of fair value measurement and disclosure
requirements for use across IFRSs. It does not extend the use of fair
value accounting, but provides guidance on how it should be applied
where its use is already required or permitted by other standards.
This standard is effective for periods beginning on or after 1 January
2013, subject to EU endorsement. The Directors are assessing the
possible impact of this standard on the Group's Financial Statements.

IAS 27 "Separate Financial Statements" replaces the current version of
IAS 27 "Consolidated and Separate Financial Statements" as a result of
the issue of IFRS 10 (see above). This revised standard is effective
for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group's Financial Statements.

IAS 28 "Investments in Associates and Joint Ventures" replaces the
current version of IAS 28 "Investments in Associates" as a result of
the issue of IFRS 11 (see above). This revised standard is effective
for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this
standard on the Group's Financial Statements.

Amendments to IAS 1 "Presentation of Financial Statements" require items
that may be reclassified to the profit or loss section of the income
statement to be grouped together within other comprehensive income
(OCI). The amendments also reaffirm existing requirements that items
in OCI and profit or loss should be presented as either a single
statement or two consecutive statements. These amendments are
effective for periods beginning on or after 1 July 2012, subject to EU
endorsement. The Directors are assessing the possible impact of these
amendments on the Group's Financial Statements.

Amendments to IAS 19 "Employment Benefits" eliminate the option to defer
the recognition of gains and losses, known as the "corridor method"
streamline the presentation of changes in assets and liabilities
arising from defined benefit plans, including requiring re-measurements
to be presented in other comprehensive income; and enhance the
disclosure requirements for defined benefit plans, providing better
information about the characteristics of defined benefit plans and the
risks that entities are exposed to through participation in those
plans. These amendments are effective for periods beginning on or
after 1 January 2013, subject to EU endorsement, and are not expected
to have an impact on the Group's Financial Statements.

IFRIC 20 "Stripping Costs in the Production Phase of a Surface Mine"
clarifies when stripping costs incurred in the production phase of a
mine's life should lead to the recognition of an asset and how that
asset should be measured, both initially and in subsequent periods.
This interpretation is effective for periods beginning on or after 1
January 2013, subject to EU endorsement. The Directors are assessing
the possible impact of this standard on the Group's Financial
Statements.

4.Segmental reporting

The Company operates in three geographical areas, UK, Brazil, and Peru,
with operations managed on a project by project basis within each
geographical area. Activities in the UK are mainly administrative in
nature whilst the activities in Brazil and Peru relate to exploration
and evaluation work. The reports used by the chief operating decision
maker are based on these geographical segments.

2011

UK

Brazil

Peru

Total

9 months
ended
30 September
2011
£

9 months
ended
30 September
2011
£

9 months
ended
30 September
2011
£

9 months
ended
30 September
2011
£

Revenue

-

-

-

-

Administrative expenses

(1,085,779)

(262,368)

(19,945)

(1,368,092)

Profit / (Loss) on foreign exchange

133

-

-

133

Listing fees and associated costs

(234,863)

-

-

(234,863)

Other operating income

407,369

-

-

407,369

Loss from operations per

(913,140)

(262,368)

(19,945)

(1,195,453)

reportable segment

Inter segment revenues

-

179,041

39,120

218,161

Depreciation charges

(611)

(3,498)

-

(4,109)

Additions to non-current assets

-

3,864,885

-

3,864,885

Reportable segment assets

6,922,127

25,956,482

779,036

33,657,645

Reportable segment liabilities

3,155,212

3,352,060

-

6,507,272

2010

UK

Brazil

Peru

Total

9 months
ended
30 September
2010
£

9 months
ended
30 September
2010
£

9 months
ended
30 September
2010
£

9 months
ended
30 September
2010
£

Revenue

-

-

-

-

Administrative expenses

(463,425)

(208,461)

(95,455)

(767,341)

Profit / (Loss) on foreign exchange

(642)

-

-

(642)

Other operating income

440,079

440,079

Acquisition costs expensed

(490,403)

-

-

(490,403)

Loss from operations per

(954,470)

231,618

(95,455)

(818,307)

reportable segment

Inter segment revenues

89,266

37,261

126,527

Depreciation charges

310

9,793

-

10,103

Additions to non-current assets

-

646,149

-

646,149

Reportable segment assets

4,635,205

23,732,453

812,608

29,180,266

Reportable segment liabilities

3,453,150

3,423,478

-

6,876,628

2011

UK

Brazil

Peru

Total

3 months
ended
30 September
2011
£

3 months
ended
30 September
2011
£

3 months
ended
30 September
2011
£

3 months
ended
30 September
2011
£

Revenue

-

-

-

-

Administrative expenses

(326,901)

(135,298)

(10,497)

(472,696)

Profit/(loss) on foreign exchange

(82,497)

-

-

(82,497)

Listing fees and associated costs

(44,510)

-

-

(44,510)

Other operating Income

47,607

-

-

47,607

Loss from operations per

reportable segment

(406,301)

(135,298)

(10,497)

(552,096)

Inter segment revenues

-

99,034

13,199

112,233

Depreciation charges

(247)

(1,218)

-

(1,465)

Additions to non-current assets

-

1,941,100

-

1,941,100

2010

UK

Brazil

Peru

Total

3 months
ended
30 September
2010
£

3 months
ended
30 September
2010
£

3 months
ended
30 September
2010
£

3 months
ended
30 September
2010
£

Revenue

-

-

-

-

Administrative expenses

(137,386)

(53,915)

(44,799)

(236,100)

Profit/(loss) on foreign exchange

2,233

-

-

2,233

Acquisition costs expensed

(336,068)

-

-

(336,068)

Other operating Income

-

440,079

-

440,079

Loss from operations per

reportable segment

(471,221)

386,164

(44,799)

(129,856)

Inter segment revenues

-

31,571

12,899

44,470

Depreciation charges

46

3,512

-

3,558

Additions to non-current assets

-

554,974

-

554,974

A reconciliation of adjusted loss from operations per reportable segment
to profit/(loss) before tax is provided as follows:

9 months
ended
30 September
2011£

9 months
ended
30 September
2010£

3 months
ended
30 September
2011£

3 months
ended
30 September
2010£

Profit /(Loss) from operations per reportable segment

(1,195,453)

(818,307)

(552,096)

(129,856)

- Gain on bargain purchase

-

1,798,251

-

1,798,251

- Gain on sale of fixed asset

10,876

10,876

- Finance income

95,199

1,571

37,179

178

- Finance costs

(136,944)

(22,011)

(45,648)

(22,011)

Profit/(Loss) for the period from continuing operations

(1,226,322)

959,504

(549,689)

1,646,562

5. Other operating income

Included in other operating income for the nine months ended 30
September 2011 is US$500,000 relating to an option payment received
from Anglo Pacific Group plc. On 12 January 2011 the Company signed an
option agreement with Anglo whereby Anglo received the option to
acquire a Net Smelter Royalty ("NSR") on future nickel revenues of the
Araguaia project in exchange for the option payment.

If Anglo chooses to exercise the option, which is exercisable upon
completion of a pre-feasibility study on the site, it will pay
Horizonte US$12.5m and shall receive a NSR. The NSR will be at a rate
of 1.5% of nickel revenue produced up to 30,000 tonnes per annum,
reduced by 0.02% for every 1,000 tonnes per annum above this rate. The
rate will be fixed at a minimum rate of 1.1% for production of 50,000
tonnes per annum and above.

No dividend has been declared or paid by the Company during the nine
months ended 30 September 2011 (2010: nil).

9.Loss per share

The calculation of the basic loss per share of 0.447 pence for the 9
months ended 30 September 2011 (30 September 2010 earnings per share:
1.08 pence) is based on the loss attributable to the equity holders of
the Company of £1,226,322 for the nine month period ended 30 September
2011 (30 September 2010: profit £959,504) divided by the weighted
average number of shares in issue during the period of 272,084,955
(weighted average number of shares for the 9 months ended 30 September
2010: 89,245,546).

The calculation of the basic loss per share of 0.197 pence for the 3
months ended 30 September 2011 (30 September 2010 earnings per share:
1.10 pence) is based on the loss attributable to the equity holders of
the Company of £549,689 for the three month period ended 30 September
2011 (3 months ended 30 September 2010: profit £1,646,562) divided by
the weighted average number of shares in issue during the period of
279,559,980 (weighted average number of shares for the 3 months ended
30 September 2010: 150,347,008).

Details of share options that could potentially dilute earnings per
share in future periods are disclosed in the notes to the Group's
Annual Report and Financial Statements for the year ended 31 December
2010.

10.Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

11.Related party transactions

The nature of related party transactions of the Group has not changed
from those described in the Group's Annual Report and Financial
Statements for the year ended 31 December 2010.

12.Commitments

The Group had capital expenditure contracted for at the end of the
reporting period but not yet incurred of £289,000 relating to
intangible exploration assets. All other commitments remain as stated
in the Group's Annual Financial Statements for the year ended 31
December 2010.

13.Events after the reporting period

There are no events which have occurred after the reporting period which
would be material to the financial statements

14. Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of
Directors on 14 November 2011.

Notes

Horizonte Minerals Plc is an AIM and TSX quoted exploration and
development company with a portfolio of nickel and gold projects in the
Carajas District of Brazil. The Company is focused on creating value
by generating and rapidly advancing exploration projects in tandem with
joint ventures with major mining companies, providing mid-term cash
flow which is then used to develop the business and pipeline projects.

Horizonte has two committed major mining partners: Teck Resources
Limited, a major strategic shareholder in the Company, and AngloGold
Ashanti Holdings plc, a JV partner on the gold portfolio.

Horizonte owns 100 per cent of the advanced Araguaia nickel project
located to the south of the Carajas mineral district of northern
Brazil; the project has the potential to deliver a resource with size
and grades comparable to other world-class projects in northern Brazil.

In addition Horizonte acquired the Lara Exploration Vila Oito project
which has a non compliant potential resource of 10 to 11 Mt grading 1.3
to 1.4% Ni further consolidating the greater Araguaia district.

Horizonte is well funded to accelerate the development of its core
projects.

Horizonte Minerals prepared this news release and David Hall, an
independent Qualified Person under National Instrument 43-101, has
reviewed and approved the technical information contained herein.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company,
certain information contained in this press release constitutes
"forward-looking information" under Canadian securities legislation.
Forward-looking information includes, but is not limited to, statements
with respect to the potential of the Company's current or future
mineral projects; the success of exploration and mining activities;
cost and timing of future exploration, production and development; the
estimation of mineral resources and reserves and the ability of the
Company to achieve its goals in respect of growing its mineral
resources; and the realization of mineral resource and reserve
estimates. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". In addition, statements
relating to "mineral reserves" or "mineral resources" are deemed to be
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the mineral resources
and mineral reserves described can be profitably mined in the future.
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the date
that such statements are made, and are inherently subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by
such forward-looking information, including but not limited to risks
related to: exploration and mining risks, competition from competitors
with greater capital; the Company's lack of experience with respect to
development-stage mining operations; fluctuations in metal prices;
uninsured risks; environmental and other regulatory requirements;
exploration, mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title to,
and the area of, its mining concessions; the Company's dependence on
its ability to obtain sufficient financing in the future; the Company's
dependence on its relationships with third parties; the Company's joint
ventures; the potential of currency fluctuations and political or
economic instability in countries in which the Company operates;
currency exchange fluctuations; the Company's ability to manage its
growth effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company's plans to continue to
develop its operations and new projects; the Company's dependence on
key personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates.

Although management of the Company has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking information. The Company
does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.